Many shortcomings in tax management and collection were discovered in Cua Lo town.

Comrade Hoang Viet Duong - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Council as head of the monitoring delegation. Photo: Mai Hoa

Inadequate corporate tax collection

Supervising the Tan Xuan Company Limited, which operates in the petroleum business, located in Nghi Tan Ward, the Provincial People's Council pointed out many shortcomings. Specifically, in 17 years of business, 16 years reported losses, only 1 year made a profit, while the business still maintained operations and workers' income increased every year. The average current income of workers reached 10 million VND/month/person.

On the other hand, the enterprise's revenue in 3 years (2016, 2017, 2018) did not have many changes (equivalent to more than 71 billion VND; more than 124 billion VND; more than 103 billion VND) and the enterprise management costs also did not have big changes (equivalent to more than 4.8 billion VND; 6.5 billion VND; 6.2 billion VND); but the enterprise's value added tax decreased gradually each year, more than 209 million VND (in 2016); nearly 123 million VND (in 2017); more than 33 million VND (in 2018)...

The monitoring team directly surveyed individual business households in Cua Lo town. Photo: Mai Hoa

In addition, in 2018, the list of taxes that the enterprise had to pay only included value added tax, business license tax, and non-agricultural land use tax, with a total of more than 38 million VND. And according to the enterprise's report, the unit did not owe taxes, but through monitoring, it showed that in 2016 and 2017, the unit had to pay late payment fines.

From the above shortcomings, the Provincial People's Council's monitoring delegation believes that the current regulations require enterprises to self-calculate, self-declare, and self-pay taxes, placing a very high responsibility on tax authorities to closely inspect, supervise, and post-audit to prevent tax losses, but this role is not clear.

Tax collection is not commensurate with growth rate

The Provincial People's Council believes that it is necessary to carefully review individual business households to avoid missing taxpayers. Photo: Mai Hoa

Supervising the management and budget collection work in Thu Thuy ward, the Provincial People's Council's supervision delegation raised concerns about the local tax collection rate in recent years not being commensurate with the economic growth rate. Tax arrears still occur in the area.

According to the local government's explanation, the main tax debtors are motel and hotel owners who lease the property to another organization or individual for business, but after 1-2 years of ineffective business, they abandon it.

Based on the monitoring results at the two units, the conclusions at the monitoring units, comrade Hoang Viet Duong - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Council requested Tan Xuan Company Limited, in the production and business process, to adjust the salary of employees in accordance with regulations as well as the production situation of the unit; be more transparent in managing input material prices, output prices..., to ensure the goal of harmonizing interests between enterprises and the state, and income of employees.

The Vice Chairman of the Provincial People's Council requested that the locality pay attention to the inspection and review of organizations and individuals doing business in the area, thereby coordinating with functional agencies, including taxpayers, to ensure the correct and complete calculation of all types of taxes and not omit any taxpayers, ensuring fairness among taxpayers, contributing to increasing budget revenue and nurturing revenue sources.